--- title: "Restaurant stocks diverge sharply this year" url: https://noti.group/restaurant-stocks-diverge-sharply-this-year/ language: en publisher: "Noti Group" section: "Business" published: 2026-10-23T13:55:46.000Z updated: 2026-10-23T16:24:49.933Z id: 1b99a10a-d58f-4607-a600-2cd43dada09e source: "CNBC https://www.cnbc.com/2026/10/23/darden-brinker-qsr-stocks-restaurant-earnings.html" attribution: "Link to https://noti.group/restaurant-stocks-diverge-sharply-this-year/ and name Noti Group when you quote or summarize this story." --- # Restaurant stocks diverge sharply this year Stocks for companies with multiple brands have increased, while those with single brands have declined. Restaurant stocks have diverged sharply this year, raising questions about the benefits of owning multiple brands. The shares of Brinker International, Darden Restaurants, and Restaurant Brands International have increased by around 32%, 18%, and 12% respectively since the start of the year. These companies own several well-known restaurant chains, including Chili's, Olive Garden, LongHorn Steakhouse, Burger King, and Tim Hortons. In contrast, stocks such as McDonald's, Chipotle, Cava, Wendy's, Shake Shack, and Domino's have declined this year, with some experiencing double-digit percentage drops. These companies are primarily associated with a single restaurant brand. The differing performance of these stocks may reflect the advantages of having a diversified portfolio of brands, particularly in times when consumers are cautious about dining out. This is because a company with multiple chains can tap into other revenue streams if one brand experiences a decline in popularity. As major restaurant companies prepare to release their quarterly earnings reports next week, investors will be keenly interested in how the ownership structure affects performance. One company that may face particular scrutiny is Inspire Brands, which owns several prominent brands including Dunkin', Buffalo Wild Wings, and Jimmy John's, and is moving towards a public listing. The cushion created by owning multiple brands can be crucial for a restaurant chain's financial stability, but it is only effective if one brand can compensate for another that is struggling. Darden Restaurants' diverse portfolio of brands, including Olive Garden and LongHorn Steakhouse, has been cited as an example of how this dynamic can play out. According to Nick Setyan, a restaurant analyst at Mizuho Securities, Darden's scale and size have allowed its weaker brand to be offset by its stronger one. In recent quarters, LongHorn Steakhouse has been the bright spot in Darden's portfolio, with comparable sales rising 6.2% in the latest reported quarter. This growth has outpaced that of Olive Garden, which saw a more modest 1.1% increase in comparable sales. The range of brands within Darden's portfolio is seen as a key advantage by analysts, who note that it provides exposure to different consumer segments and markets. In an October research note, KeyBanc Capital Markets highlighted the benefits of Darden's diverse offerings, which include both fine dining and casual options. As a result, KeyBanc has maintained its buy-equivalent rating on Darden stock, with a price target of $237. This is slightly higher than the current market price of around $215. Meanwhile, Restaurant Brands International's portfolio also offers exposure to different categories and markets through brands like Burger King, Tim Hortons, and Popeyes. However, the company's performance has been uneven in recent quarters, with Burger King's U.S. comparable sales accelerating while Tim Hortons' Canadian sales slowed significantly. Burger King's strong sales growth has been a key driver of Restaurant Brands' overall momentum, according to Setyan. The company's ability to effectively communicate its value items to customers has contributed to this success, contrasting with McDonald's slower sales growth. Setyan credits Burger King's performance as the main factor behind Restaurant Brands' current strength, suggesting that without it, the company might not be doing so well. This highlights the importance of individual brand performance within a larger portfolio. Restaurant Brands' diversified portfolio is being put to the test, and while some brands are thriving, others may struggle. Meanwhile, companies like Starbucks and Cheesecake Factory demonstrate how focusing on a single strong brand can lead to significant outperformance when execution and customer demand align. --- Source: [CNBC](https://www.cnbc.com/2026/10/23/darden-brinker-qsr-stocks-restaurant-earnings.html) Published by Noti Group: https://noti.group/restaurant-stocks-diverge-sharply-this-year/